Editorial: Energy Efficiency Pioneers

OK, there’s a new energy-saving product on the market. It might even be the fruit of government-funded research. But it’s expensive and available from only a few, small manufacturers (or perhaps just one manufacturer). The price would surely fall if economies of scale kick in. But investors don’t understand the energy efficiency market and are reluctant to supply the needed capital. Nothing happens. The country—indeed the world—needs dozens of these innovations if it is going to meet the ambitious energy-savings targets announced by presidents, governors, and speakers of inconvenient truths. The Business Schools talk of the “valley of death” between the prototype and widespread commercialization, where thousands of great ideas have foundered. This is (or could be) the story for the heat pump water heater, advanced glazing technologies, and ultra-high efficiency lighting technologies.